China is Skype's biggest market, but certain elements of the service may be illegal
China is now Skype's biggest market, despite legal issues that may make parts of the internet telephone service illegal in the country.
EBay, which acquired Skype in September last year, said yesterday that there are 13 million registered Skype users in China, about 13 per cent of the total, and more than in any other nation.
The Skype user numbers were released as part of eBay's Analyst Day (PDF download) presentation.
After China, the next largest nation for Skype is the US which has fewer than half the Chinese total at about six million. The company claims more than 100 million users worldwide.
However, the SkypeOut service, which lets users call traditional telephone numbers at low cost, appears to be of uncertain legality in China.
According to media reports last year, at least one local telecoms operator in China has suggested that a 2004 regulation forbids SkypeOut and similar services.
Only a small number of licensed telecoms operators are able to offer such services, other reports say, and Skype does not have a licence.
Chinese telecoms licenses are traditionally difficult to obtain, particularly for foreign-controlled companies.
But, despite these apparent legal issues, anecdotal evidence from China strongly suggests that SkypeOut is still working in many locations.
"Skype is a huge hit in China," said Matt Bannick, president of eBay's international operations, according to Chinese news service Xinhua.
SkypeOut is important to Skype as a source of revenue, because the company generates relatively little income from its core PC-to-PC VoIP and instant messaging services.
A US firm claimed last year that a leading Chinese telecoms provider was testing software which can detect and block calls made using Skype and other VoIP services.
Skype chief executive Niklas Zennström denied rumours that the blocking of Skype had already begun.
The company began filtering keywords out of text messages sent over Skype earlier this year, in accordance with vaguely-stated government regulations.
Asia is eBay's fastest growing market, with China driving that growth. The online auction firm increased its new listings in China by 95 per cent last year.
EBay customers are strongly encouraged to use Skype to communicate with each other, which has helped the VoIP firm to increase its market share rapidly in China.
China is now Skype's biggest market, despite legal issues that may make parts of the internet telephone service illegal in the country.
EBay, which acquired Skype in September last year, said yesterday that there are 13 million registered Skype users in China, about 13 per cent of the total, and more than in any other nation.
The Skype user numbers were released as part of eBay's Analyst Day (PDF download) presentation.
After China, the next largest nation for Skype is the US which has fewer than half the Chinese total at about six million. The company claims more than 100 million users worldwide.
However, the SkypeOut service, which lets users call traditional telephone numbers at low cost, appears to be of uncertain legality in China.
According to media reports last year, at least one local telecoms operator in China has suggested that a 2004 regulation forbids SkypeOut and similar services.
Only a small number of licensed telecoms operators are able to offer such services, other reports say, and Skype does not have a licence.
Chinese telecoms licenses are traditionally difficult to obtain, particularly for foreign-controlled companies.
But, despite these apparent legal issues, anecdotal evidence from China strongly suggests that SkypeOut is still working in many locations.
"Skype is a huge hit in China," said Matt Bannick, president of eBay's international operations, according to Chinese news service Xinhua.
SkypeOut is important to Skype as a source of revenue, because the company generates relatively little income from its core PC-to-PC VoIP and instant messaging services.
A US firm claimed last year that a leading Chinese telecoms provider was testing software which can detect and block calls made using Skype and other VoIP services.
Skype chief executive Niklas Zennström denied rumours that the blocking of Skype had already begun.
The company began filtering keywords out of text messages sent over Skype earlier this year, in accordance with vaguely-stated government regulations.
Asia is eBay's fastest growing market, with China driving that growth. The online auction firm increased its new listings in China by 95 per cent last year.
EBay customers are strongly encouraged to use Skype to communicate with each other, which has helped the VoIP firm to increase its market share rapidly in China.
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